Batman Begins

Company ‘Wayne enterprises’ is largest Telecom operator of Gotham, which has in totality 3 private operators and 1
Govt operator. Telco ‘Wayne enterprises’ is a diversified telco with many industry First practices and products. Product
offering are Prepaid Mobility, Postpaid Mobility, Broadband, Business Data solutions, MPLS, Fixed Line, DTH, Payments
Bank.

With recent developments in industry and 4G technology adoption, a new Operator ‘Joker’ has come up with 4G LTE
only network with massive investment plans, and considers Data as the next Oil business.

Post the launch of new operator ‘Joker’ in Sep’16 with aggressive plan offering, other incumbent telcos including
‘Wayne’ responded with similar competitive offerings for 4G handsets. New operator ‘Joker’ was initially using his app
for onboarding customers, and targeting only 4G handset users.

In Sep’17, the new operator ‘Joker’ launched his own 4G feature phone (locked to his network) at a price point of G
1500. The phone has a 2.4 inch screen but can play videos and has features like voice commands etc. With this phone,
customer can choose any of the 2 monthly recharges- 1) G 50- Unlimited calls + 1GB data/month or 2) G 150- Unlimited
calls + 1GB data/day.

In comparison Wayne Enterprises has a product of G 200 with Unlimited call + 1.5GB data/day.

ARPU (Average Revenue per User) for Joker feature phone user is G 80. Joker’s overall ARPU is G 135

ARPU for Wayne Enterprise is Rs90. Feature phone customer base ARPU is Rs.70 and smartphone customer base ARPU is
110. Around 45% of Revenue comes from Feature phone customers.

The subscriber base of the market has moved as per the below data-

Operator Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18

Wayne 25% 25% 24% 23% 24% 24% 25% 26%
Others 75% 75% 71% 68% 66% 65% 62% 59%
Joker 0% 1% 5% 9% 10% 11% 13% 15%

Currently in Gotham, a basic feature phone handset from market OEMs (non-4G) is available starting G 750. Android
based smartphones start at around G 3000. Specifications of the ‘Joker’ 4G feature phone and the other phones in the
market is given in the table below:

Feature Phone 4G feature phone 4G smartphone

MOP (in Gotham $ - G) 800 1500 4399
Display/screen size 1.8” 2.4" 4.5''
RAM 4MB 512MB 1GB
Internal storage 4MB 4GB 8GB
Back camera No 2MP 5MP
Battery 800mAh 2000 mAh Li-ion 2000 mAh Li-ion
Processor Dual core, 1.2GHx, Cortex 1.1Ghz, Quad
A7 core
Chipset Spread trum SC9820A Mediatek
MT6737M
OS Series 30 KAI OS Android v8.1
Sim Dual SIM Single Sim Dual Sim
4G No yes yes
3G No no Yes
2G No no Yes
Volte No yes
Front camera No 0.3MP 5MP
Torch light yes
Loudspeaker yes yes
FM radio Yes yes yes
Audio jack Yes yes yes

Handset shipments in Gotham has moved as below:

Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4-
Quarter 15 16 16 16 16 17 17 17 17 18 18 18 18
Total handsets 49 53 67 52 49 62 74 60 54 58 76 84 84
Smartphones 17 22 25 21 22 27 30 26 25 26 36 29 27
Feature Phone 32 30 42 31 27 35 44 34 29 31 40 55 57
‘Joker's 4G FP 0 0 0 0 0 0 0 0 0 0 2 16 20
'Others 32 30 42 31 27 35 44 34 29 31 38 40 37

OEM (Mobile handset player share:

% share of OEM OEM OEM OEM OEM OEM OEM OEM OEM OEM OEM
Price Band Joker Others
price band 1 2 3 4 5 6 7 8 9 10 11
≤2,000 63% 38% 9% 0% 7% 8% 4% 3% 4% 0% 0% 0% 0% 27%
2001-3000 2% 0% 39% 0% 1% 0% 29% 13% 12% 0% 0% 0% 0% 6%
3001-4000 2% 0% 4% 0% 0% 7% 25% 0% 4% 0% 0% 0% 0% 58%
4001-5000 2% 0% 0% 38% 5% 13% 4% 11% 3% 0% 0% 0% 0% 27%
5001-6000 4% 0% 0% 62% 14% 8% 0% 4% 0% 0% 0% 0% 0% 12%
6001-8000 7% 0% 38% 35% 4% 1% 3% 4% 0% 0% 0% 4% 0% 12%
8001-10000 9% 0% 18% 31% 2% 1% 1% 1% 0% 22% 12% 2% 0% 10%
10001-15000 7% 0% 36% 36% 0% 0% 1% 0% 0% 1% 7% 9% 0% 8%
15001-20000 2% 0% 39% 9% 0% 0% 1% 0% 0% 20% 20% 1% 4% 5%
>20000 2% 0% 39% 1% 0% 0% 2% 0% 0% 3% 14% 3% 23% 15%

Problem statement:

1. Given the competition focus on 4G handsets, can Wayne come up with a new type of channel/ acquisition
process to increase its share on 4G handsets?
2. Which customer segment should Wayne Enterprise target and how?
3. How should ‘Wayne’ play the Mobile handset game? Which segment of handsets should it focus on and how?
4. How should ‘Wayne’ respond to the ‘Joker’ 4G feature phone?